Karnataka high court stays state’s order on Ola, Uber autos
Two people aware of the developments said the Karnataka high court has directed that app-based aggregators can charge up to 10% convenience or booking fees, excluding GST (goods and services taxes) applicable on the fares.
The Karnataka high court on Friday stayed an order by the state transport department stopping auto rickshaw services provided by app-based aggregators, including Ola and Uber, people aware of the developments said.
Two people aware of the developments said the high court has directed that app-based aggregators can charge up to 10% convenience or booking fees, excluding GST (goods and services taxes) applicable on the fares.
The high court also ordered that the government take the suggestions of all stakeholders while fixing the fare within 15 days.
“There are three things mainly, which the court said. One is that the court has clarified that there was no ban. It recognised the need for booking or a convenience fee and that the transport department has to come back with the fares after consultations. In the interim, aggregators can charge 10% commission apart from GST (goods and services taxes),” one of the two persons cited above said, requesting anonymity.
The directions come days after the Karnataka transport department directed app-based aggregators such as Ola, Uber and Rapido from offering auto-rickshaw services, alleging that their fares were higher than rates fixed by the government. The aggregators were also warned that action would be initiated if autos were found violating the order.
The government had contended that auto-rickshaws were not covered under the licence issued under the Karnataka On-Demand Transportation Technology Aggregator Rules in 2016.
To be sure, according to the government, the minimum fare is ₹30 for auto rickshaws and ₹15 per km after that.
The state transport department said the app-based aggregators charged much higher fares and levied a convenience fee.
ANI Technologies Private Limited, offering service through the Ola app, and Uber India Systems Private Limited challenged this before the high court in two separate petitions.
Justice M G S Kamal, who heard the petitions on Thursday, suggested that the authorities and the companies arrive at a compromise and make a joint submission.
“We welcome court order, which recognises that auto drivers have the right to operate using aggregator platforms. It also recognizes that platforms like Uber can charge a booking fee, which allows them to cover their costs and continue to provide their services,” a spokesperson from Uber said in a statement on Friday.
“E-hailing autos are thriving in Bengaluru because of the value it brings to drivers and riders, who prefer it because of the upfront pricing, the lack of haggling and the safety features that come with the app,” Uber added.
“Commission caps threaten the viability of this vibrant e-hailing sector, which will impact the tens of thousands of auto drivers who rely on it for their livelihoods and will result in the shrinking of this fledgling category. We will continue to engage with the government to find ways of regulating the sector in a way that allows riders, drivers and platforms to benefit from technology that has truly transformed urban mobility,” Uber said.
Auto rickshaw unions have accused the transport department of going easy on app-based aggregators over fares but cracking down on drivers with hefty fees.
Amrutesh, an advocate representing a section of auto drivers and owners, told HT that the court gave the government and app-based aggregators 15 days to reach a consensus on the fares.
“For eight years, they (app-based aggregators) have been operating without a licence. Auto rickshaws are not even included in the on-demand aggregator rules,” Amrutesh said.
The transport commissioner, THM Kumar, did not respond to calls or texts from HT.
